U.S Bonds – Fed Buying From Belgium

I’ve had several people ask my views / opinions on the recent “up moves” in U.S Treasuries considering the fact that the Fed “suggests” its tapering asset purchases by an additional 10 billion dollars month over month.

So how on Earth do bond prices just keep going higher? Who on Earth would be buying these worthless / fraudulent pieces of toilet paper if not the Fed?

Answer: It is the Fed, only they are doing it via surrogate buyers in Belgium.

Same bullshit – even more deceptive.

I’ll let our good friend Dr. Paul Roberts do what he does best and explain to you “exactly” how this is taking place, as no one could possibly explain it better.

You won’t believe what you’re reading, when you get your head wrapped around “just how desperate” and “just how deceptive” the U.S Federal Reserve is.

http://www.paulcraigroberts.org/2014/05/12/fed-great-deceiver-paul-craig-roberts/

YOU MUST READ THIS ARTICLE

 

 

The Fed’s Shadow Operations and What This Means for Currency Markets

This Belgium connection isn’t just some accounting trick—it’s the lynchpin holding together the entire illusion of U.S. monetary policy. When you dig into the mechanics of what’s happening, you realize the Fed has created a feedback loop that’s completely divorced from market reality. They announce tapering to the public while simultaneously ramping up purchases through offshore proxies. It’s financial theater at its most brazen.

The implications for forex traders are massive. Every currency pair involving the USD is now trading on fundamentally false information. The bond market, which serves as the backbone for interest rate expectations, is being artificially manipulated through this shadow purchasing system. You’re not trading against genuine market forces—you’re trading against a rigged game where one player holds all the cards and lies about their hand.

Currency Debasement Through Deception

This Belgian operation exposes the true desperation behind U.S. monetary policy. When a central bank has to resort to shell games and international proxies to maintain the illusion of stability, you know the foundation is cracking. The dollar’s strength isn’t built on economic fundamentals—it’s propped up by an elaborate accounting scheme that would make Enron executives blush.

Every time the Fed announces another “taper,” they’re essentially lying to the market while simultaneously increasing their actual purchases. This creates a scenario where USD weakness becomes inevitable once the market catches on to the deception. The question isn’t if this house of cards will collapse—it’s when.

The Treasury Market’s Artificial Life Support

Think about the absurdity of what’s happening here. Treasury yields should be skyrocketing given the massive debt issuance and supposed reduction in Fed purchases. Instead, we’re seeing yields remain artificially suppressed through this Belgian backdoor operation. It’s like watching a patient on life support while the doctors claim they’ve reduced the medication.

This manipulation creates false signals across all markets. Currency traders making decisions based on yield differentials are essentially trading on fabricated data. The interest rate environment that drives forex flows is being artificially maintained through deception. Every economic indicator that relies on authentic Treasury pricing is now suspect.

The Endgame for Global Currency Markets

Here’s what keeps me up at night: this level of deception suggests the Fed knows something the rest of us don’t about the true state of the U.S. economy. You don’t resort to these shadow operations unless the alternative is systemic collapse. They’re buying time, but at what cost?

The moment this Belgian connection gets exposed to mainstream markets, we’re looking at a complete repricing of dollar-denominated assets. Every forex pair will need to recalibrate based on actual market dynamics rather than Fed manipulation. The golden reckoning Dr. Roberts discusses becomes not just possible, but inevitable.

Trading the Manipulation

So how do you trade in a market where the primary reference point—U.S. Treasuries—is being artificially manipulated? You look for assets that can’t be manipulated as easily. Physical commodities, precious metals, and currencies backed by tangible resources become your safe havens.

The Fed can manipulate Treasury purchases through Belgian proxies, but they can’t manipulate global supply and demand for real assets. This is why smart money is already rotating out of dollar-denominated paper and into hard assets. They see the writing on the wall.

This isn’t just about forex trading anymore—it’s about preserving wealth in an environment where the primary reserve currency is being propped up through increasingly desperate measures. The Belgium operation is just the tip of the iceberg. Once you understand how deep this deception goes, every trading decision starts to look different.